ROA stands for return on investment. It is a way to measure a company’s assets as a ratio of its profit less its depreciation for the average capital used in a project or for the organization as a whole. The ROA formula is used often by investors to tell whether a company is using its resources effectively or not.
Here are three stocks currently with high ROAs: Fitbit Inc (NYSE:FIT), Qunar Cayman Islands Ltd (NASDAQ:QUNR), and Accenture Plc (NYSE:ACN).
The first stock to mention is Fitbit Inc (NYSE:FIT). It is keeping at a return of investment of 67.00%, which is measured over the past 12 months. That number is higher than the 7.73% industry average, as per Reuters data. The sector average is at 12.53%.
Qunar Cayman Islands Ltd (NASDAQ:QUNR) is another stock with a high ROA. It has a return on investment of 1090.50% higher, over the last fiscal year, than the Reuters industry average shows. The average is at 16.57% for the industry ratio. The sector average is at 12.53%.
Accenture Plc (NYSE:ACN) is another stock to mention here as it has had a return on investment over the last fiscal year of 36.66%. That number is up from the sector average of 6.18% and up from the typical for the industry of 9.19%. Those averages are calculated by Reuters.
A high ROI, such as the three stocks mentioned above, shows that the investment gains are at a positive in relation to the investment cost. Profits are shown, relative to the capital invested by this measurement. This simple tool is always used in relation to a period of time, such as 12 fiscal months. The ROI metric is typically quite useful for investors. This is the latest news on the stocks of Fitbit Inc (NYSE:FIT), Qunar Cayman Islands Ltd (NASDAQ:QUNR), and Accenture Plc (NYSE:ACN).